According to my cursor usage screen, I've got through over $170 of AI credits this month on the cursor Pro package which cost me $20.

So my question is who's paying for all of that?

In the AI coding arms race, much like in the cheap flights strategy it is probably a case of last one standing who takes the reward, meaning that these companies are eating that cost in order to retain their users, especially the paying ones.

https://techcrunch.com/2025/08/07/the-high-costs-and-thin-margins-threatening-ai-coding-startups/